In need of a simple and fast solution to finance your next business vehicles?
You can seamlessly find out your budget, apply and compare deals for your business vehicles with Capitalise.
Simply enter the registration of the vehicle, or let us know a make and model to get started.
Financing a car or any business vehicle can enable your business to preserve your cash flow for other essential expenses or to invest back into other areas of your business.
Monthly repayments make budgeting more manageable and predictable for your business.
You may be able to claim tax deductions or capital allowances on the finance payments, potentially reducing your overall tax liability.
To help you estimate the costs involved in financing a car, you can use our business loan calculator. This will take into account factors such as the car’s purchase price, deposit amount, term length, and interest rate to provide an estimate of monthly repayments.
To finance a car through your business, you'll need to do the application in your business' name. The lender or car finance provider will then assess your application based on information such as your and financial history. You'll likely need to provide the following documents:
You may want to work with an expert to help you finance a car through your business. When you search for business car finance with Capitalise, our funding specialists can help guide you through the process.
Your business pays an initial deposit followed by monthly instalments over an agreed term. Once all payments are made, your business owns the car outright.
Your business essentially rents the car for an agreed period. At the end of the lease term, you can either return the car, extend the lease, or purchase the car for a pre-agreed amount.
Similar to a finance lease, an operating lease involves renting the car for a fixed term. However, with an operating lease, you typically have the option to return the car at the end of the lease without any further obligations.
Your business leases the car for a fixed term and mileage, paying a predetermined monthly rental fee. At the end of the contract, the car is returned to the leasing company, eliminating concerns about depreciation and resale value.
Capitalise has been regulated by the Financial Conduct Authority (FCA) since 2015, ensuring a high standard of trust and security for our customers. We partner with over 100 UK business lenders to offer a wide range of financing options. This allows us to help you find the most suitable car or van finance solution for your business needs.
A business loan is a lump sum of money borrowed from a lender that can be used for various business purposes. This could include purchasing a car, but it could also be used for working capital, business expansion or any other need.
On the other hand, business car finance specifically refers to financing options tailored for acquiring vehicles for business use.
Yes, if your business is based in the UK you can claim 100% tax relief in the first year if you purchase your business car using hire purchase.
There are some rules and exemptions that apply, for example the car must be used exclusively for business purposes. You could speak to an accountant to be clear on the current legislation and tax relief that applies, or you could take a look at the government website.
Both business car finance and leasing involve acquiring a car for business use, but they differ in ownership and payment structure:
Business car finance: You make fixed monthly payments towards owning the car outright. Once all payments are made, you gain full ownership of the car.
Leasing: You pay for the use of the car over a set period, typically with lower monthly payments compared to financing. However, you won’t own the car at the end of the lease term, unless you choose to exercise a purchase option.
There are a number of benefits to buying an electric company car. For example the running costs are lower and you could access a government grant or incentive. However, the choice between whether to purchase an electric, petrol or diesel company car will depend on your individual circumstances and preferences.
There are many other vehicle finance options available in addition to business car finance. For example, you could use business finance to purchase a van, a truck, a fleet of vehicles, an HGV, or a tractor.
Business car finance works by spreading the cost of acquiring a car over a set period. There are several different finance options available such as hire purchase, finance lease, operating lease or contract hire. These options offer flexibility in terms of ownership, repayment structures, and end-of-term options, allowing you to choose the most suitable solution for your budget and requirements.
Here's a step-by-step overview of how business car finance works:
